I am 62. I had an AGI of $197,607 in 2023. Need to start Traditional to Roth conversions before I turn 65 to avoid Medicare +. Can I do this without a Tax Advisor?

[fightmenow1--]

Is this possible?

[TeriH]

Great question.  That I struggle with myself.

Can you? sure  Should you? probably not.

There are so many factors to be considered.  Income streams (not and in retirement), cash requirements for expenses, any big expenses planned, expected life, what you plan to do with your nest egg, the taxes that will be owed when you make the conversion, how you'll pay for those taxes, and the list goes on.  

Turbotax can help you calculate the tax due on the conversion.  But, that won't answer the quesion of should you.  Most reputable financial brokerages have tools and calculators that can assist.  But if this is your first forray into roth conversions, you would probably be best served to speak with a financial advisor.

Good luck with this decision.  Roth's are a great vehicle in the right situation.

[carolineb]

Hi @fightmenow1-- , 

Sure, anything is possible, but maybe not advisable. 

Here are a couple of links with information on how this can be done on your own: 

How to Convert to a Roth IRA (I love Investopedia)

Roth IRA Conversion: Definition And Rules ( I also love NerdWallet)

However, I would strongly advise that you reach out to a financial advisor before taking the plunge. They can do an analysis of your tax rate today with Roth conversion and your tax rate if you pay the tax when retired.  It’s suggested you use assets outside of retirement accounts to pay any taxes resulting from the conversion as those funds would no longer be potentially growing tax-free within the Roth IRA. You obviously want to pay the tax in the lowest tax bracket possible. There is some guessing, because you don’t really know what size your nest egg will be in retirement and you don’t know how tax brackets will change. When RMDs hit, you don’t want your SS, pension, dividends and interest plus the additional from the RMD to push you into a higher bracket. But with a little research and time, you can do the same thing for yourself. 

If this post answers your questions, please give it a thumbs up! Thanks for reaching out!